[ColdNoMore]

Originally Posted by suesiegel

As we all know if a deal sounds too good to be true it is too good to be true.

The dealer needs to get you in the door. When you arrive you get lines like we just sole the last one or that is the one without air conditioning etc.

You will see ads $100 over dealer cost. WOW that sounds like an impossibly great deal. AND IT IS. On any car there is something called "A call Back" Depending on the car the dealer gets 3-7% back on the cost when the car is sold.

You can easily see what people are paying for the car you want, equipped as you want, on the internet. You know the dance when you go to buy a car. After the salesman shoots you a number. If, it is higher than your information
yopu tell him you will not pay more than ..............
'

Actually, it's called the 'dealers holdback.'

What Is Dealer Holdback? on Edmunds.com

Dealer holdback is designed to supplement the dealer's cash flow and indirectly reduce "variable sales expenses" (another way of saying "sales commissions") by artificially elevating the dealership's paper cost. The holdback is a percentage of either the manufacturer's suggested retail price (MSRP) or invoice price of a new vehicle that the manufacturer repays to the dealer.

Some car buyers try to use dealer holdback to calculate the net price of a vehicle to the dealer, with the intention of using that amount as a basis for negotiating a rock-bottom price.

However, determining the dealer's actual net cost is difficult, even for seasoned automotive insiders. Instead, it's better to focus on tangible numbers like the Edmunds.com True Market Value (TMV®), which is an average of what other people are paying for a car in a given area.

Now the twist: With the introduction of holdbacks some years ago, most manufacturers inflated the invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership.